Do you really need a dental practice valuation? Yes, and for the same reasons you have disability and life insurance…to protect your family.
In the event of Practice owner’s death, the practice value decreases an average of 5% per week and 50% of practices go unsold when the owner dies unexpectedly. A thorough practice valuation will take 3 to 5 weeks to complete. Most family members have no idea what a practice is worth, where to find the documents necessary to have it properly appraised or who to call for help. When grieving the loss of a loved one, an unprepared family is often unable to deal with the practice until it’s too late. This doesn’t have to happen to your family. You can prevent it by having a current practice valuation and informing the appropriate family member(s) of the location of the valuation. Family members should be given directions on steps to take should the worst happen and you become disabled or die. This can be as simple as putting the steps in writing and making family aware of the location of written directives.
It is advisable to have a valuation updated yearly. This can be done for a minimal fee, will give you great peace of mind and will make the lives of your loved ones much easier in the event of a tragedy.